Increasing fears of an imminent recession across the UK economy could spell difficult times ahead for HR professionals who look back to the early 90s when diminishing workforces, reduced training budgets and recruitment freezes were the norm.

Though the current difficulties have yet to be officially declared a recession, the economic climate is hardening and many organisations, not just in the financial sector, are feeling the pinch.

A recent report by the British Chambers of Commerce carried an analysis of 5,000 firms and found that many in the manufacturing and services sectors had negative cash flow, and that employment expectations had stooped to a record low. This coincides with another gloomy CBI report in June predicting that 200,000 jobs would go by the end of 2009 with a dramatic cutting back of training and skills resources all round. That said, there are encouraging signs that business has learnt clear lessons from past downturns. The obvious reaction to cut costs are tempered by clear memories of past dips in the economy when leading firms cut back staff and training too quickly, leaving themselves short of the right people when the upswing took place.

Fleur Bothwick, diversity director at consultancy Ernst & Young, said employers should be wary of reacting to short-term economic conditions: "With any change management programme you need to focus on the medium-to-long-term, rather than react to the short-term, so that you don't lose momentum." (Source: Personneltoday.com 14/07/08).
In a downturn, the HR function needs to be fine tuned and imaginative rather than act defensively. Applying innovative HR management alternatives will help ensure survival, but equally importantly, will ensure a company survives with its most valuable resources intact and ready to drive growth. Although larger companies have an advantage during downturns in that they have correspondingly larger HR departments, skills, tools and advanced practices, there are certain strategies which work across all sizes of business. Finding time to explain clearly and consistently what is happening and why, promotes trust and loyalty. Reducing costs need not mean totally eroding salaries and HR can play a vital part in consulting and confiding with staff in the common goals of refocusing overall spend.

Business strategy will always be affected by the changes taking place in the economy and that includes the decision to downsize. But downsizing to some extent can be less dramatic and less costly in legal and emotional terms, by offering alternatives to pure staff cutbacks, such as reduced working hours or temporary staffing. Keeping the company focused may include retraining and upskilling (things which really can be costly when a company is working flat out) with the advantage of retaining staff support and loyalty, but also ensuring staff are in place and even better prepared for the inevitable upturn. During any downturn, and the current economic climate is not even an officially classified recession, finding automatic ways to lose people is simply not a sensible or sustainable option.

RESILIENCE of the economy through the global financial crisis is the main reason why Australians are returning home to work.

Research by financial services recruitment specialists Link Recruitment found the number of Australians seeking so-called "city'' jobs fell 14 per cent in the first four months of 2008 compared to the same period last year.

"In fact, growing numbers of Australians are moving back to Australia and turning to the domestic jobs market for the next stage in their career development,'' the company, which has offices across Australia, New Zealand and Britain, said.

"The latest figures available show more Australians are returning home from the UK each year than any other nationality (around 34,000 annually) - and career opportunities in their homeland represent the principal motivating factor.''

Sixty-five per cent of Australians returning home cited a job offer or the search for employment opportunities as their main reason for moving.

The resilience of the economy through the global financial crisis is the biggest draw.

Link's Jason Cartwright said that historically, large numbers of skilled Australian professionals looked to gain experience in overseas markets such as the UK.

"Now we're seeing a reverse of the trend,'' he said.

"Australians are heading home and looking to benefit from the strength of the Australian economy.
"There is a belief that Australia is a safer bet whilst the credit crunch runs its course.''

While Australia has not been immune to financial problems unfolding worldwide, the fundamental economy remains strong.

Growth has risen for 16 consecutive years and the dollar hit an 11-year high against the British pound this month, meaning Australians' sterling earnings are now worth less in dollar terms.

Resource-rich Australia is benefiting from strong commodity prices and, with Japan and China its key export partners, is set to gain in the long term from the global shift of economic power from the US to Asia.

Unemployment rates are also at a 33-year low and the job market is buoyant.

But recruiters said it was not all doom and gloom in the British financial job market.

Nabila Sadiq, managing director of London recruitment firm Joslin Rowe Temporaries, said the temporary job market remained strong, with only 0.3 candidates for every vacancy.

"The perception is that jobs in London's financial service industry have dried up,'' Mr Sadiq said.

"In reality, temporary recruitment remains incredibly strong as firms turn to the flexibility of a short-term work force ... the market for temps is probably as strong as 2007 in some areas.''

From: NEWS.com.au

New guide urges companies to take responsibility for their actions

01/04/2008
A new guide has been published today, urging UK plc to recognise the impact of their actions on the three R's – recruitment, retention and reputation. Calling on organisations to take corporate responsibility seriously, the guide encourages employers to look beyond statutory obligations. It also outlines how businesses should report on Corporate Responsibility.

Produced by the Chartered Management Institute, the guide argues that corporate responsibility is now more important than the more widely recognised term, 'corporate social responsibility'. It suggests that community and environmental concerns are critical, but suggests that focusing on these issues in a 'social' context relegates them to little more than a 'bolt-on' to business operations.

Reminding directors about their legal obligation to produce a Business Review that addresses the needs of internal and external stakeholders, the guide focuses on key reasons for adopting formal corporate responsibility policies. These include

. reputation management – demonstrating commitment to the workplace, community, marketplace and environment to enhance the brand name, something that 55 per cent of managers believe is regularly under threat

. recruitment and retention – over 80 per cent of managers view 'organisational culture and values' as a strong motivational driver. Communicating these can help attract and retain the best talent

. innovation and learning – just 16 per cent believe innovation is a challenge for organisations, but environmental and social concerns are often blamed for restricting new activities. The guide highlights how effective corporate responsibility can harness innovation

To capitalise on the benefits of corporate responsibility, the guide offers organisations advice on how to develop an effective corporate responsibility policy. Areas to consider include:

. identifying the key risks and opportunities for your organisation
. engaging with stakeholders throughout the process
. setting performance indicators so activity can be measured
. regularly revisiting the policy to ensure it is driving business goals

Commenting on the need for a structured approach to corporate responsibility activities, Jo Causon, director of marketing and corporate affairs at the Chartered Management Institute, says: ""Evidence exists to suggest that the majority of UK organisations are struggling to recruit and retain enough talented people and in the current economic climate the same could be said for securing the customer base.

In such tough market conditions, organisations would do well to realise that adopting a responsible and accountable approach to their actions holds real business benefits, making them appealing to staff and stakeholders, alike."

To download the Institute's 'Corporate Responsibility' guidelines, visit: www.managers.org.uk/corpresponsibility .

How to minimise costs in recruitment during a downturn
Attend the Online Recruitment Conference & Exhibition on 3rd June 2008
www.onrec.com/june

www.managers.org.uk/corpresponsibility

Women in IT keen to develop political ‘savvy’

01/04/2008
77% of women working in IT do not feel they have sufficient skills to manage in a political context within the workplace. This figure comes from a recent “Political Savvy for Women in IT” event held by online job board and networking portal www.womenintechnology.co.uk in association with Société Générale.

The main skills that women wanted to develop were their confidence in both handling and identifying office politics. “I tend to ignore politics and avoid it in the office”, said one attendee while another commented “I want to gain the ability to analyse and understand the political environment”. “Knowing the difference between gossip and politics” and “managing the egos of others in a testosterone fuelled workplace” were also on women’s wish lists.

The research also highlighted how office politics had affected many women in their jobs with 53% of attendees saying that they had been the victim of labelling, stereotyping or sabotage at work. When asked how they had responded in a politically savvy way to a situation, many answered that they simply had not; they had changed their job or had taken legal action.

“I kept my job and hoped someone would notice that I was different and I started labelling and sabotaging the person myself. Neither worked” said one respondent while another commented “We do what women always do – overperform - outdo the critics but this is energy sapping and not always productive“

Maggie Berry, Director of womenintechnology.co.uk, said, “This political savvy event was a great success and provided many women with practical tips for dealing with office politics and answered many of their questions. All our events aim to empower women who are working in a male dominated industry and hopefully the attendees felt this was another step forward in us doing that.”

How to minimise costs in recruitment during a downturn
Attend the Online Recruitment Conference & Exhibition on 3rd June 2008
www.onrec.com/june

Aon supports call for urgent remedy for UK plc’s sick note culture

01/04/2008
In response to Dame Carol Black’s major report on Britain’s sick note culture, Aon Consulting has issued the following comment.

Matthew Lawrence and Charlotte Bray, consultants in Aon Consulting’s Benefits Solutions team, said:

“We welcome Dame Carol’s call for a fundamental shift in attitudes to recognise that work is good for you, and an acknowledgement from both the individual, health professional and employer that people do not need to be 100 per cent fit in order to work.

“In particular, the report endorses our view that employers should do more to implement health initiatives that keep people fit for work, or hasten their return to employment when they are sick.

“However, there is a barrier to employers investing sufficiently in health and wellness initiatives and both the Government and internal HR managers need to do a lot more to persuade boardrooms that they need to address the problem.

“Occupational health services are under utilised by companies - and particularly by SMEs - and we support the notion that wider access would be beneficial. However, occupational health service (OHS) professionals are a scarce resource and in order to provide OHS on the NHS, we need major investment in restructuring, funding and training of the discipline. These changes could take many years to implement.

“Dame Carol’s recommendation that employers should report on workplace health and well-being in company accounts is a step is the right direction. With work-related ill-health costing UK plc more than £100bn a year, there is a compelling argument for urgent action. Our own research shows that those employers with effective employee health management programmes will benefit financially both in the short and longer term.

“We recognise the pivotal role GPs could play in fostering a fit for work culture and it is important to balance this with the employer’s role in shaping a wellness culture in the working environment. We support Dame Carol and the Government’s key message that the sick note should be replaced by a "fit note", in which the GP would outline what the employee is able to do, rather than what he or she cannot do.

“According to official figures, 90 per cent of those who come on to incapacity benefit want to return to work, so government, GPs and employers alike should be doing everything they can to encourage them back into the workplace. We urge the Government to action the key points from the report, including incorporating occupational health and vocational rehabilitation into NHS treatment.“